OLD VS NEW HDB flats

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chandvi
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OLD VS NEW HDB flats

Post by chandvi » Wed, 25 Feb 2009 8:39 am

Need everybody's advice and shared experience on buying property, especially HDB flat in Singapore.

As Singapore PR, I have a dillema in buying a HDB flat.

Which one better? Buying a flat at a pretty aging building (20 years+) or something considerably new around 5 - 6 years.

The old flat will have lower valuation price; therefore it definitely will be better in term of mortgage, agency fee, admin fee as well as the first installment (at 10% according to the new rule). Furthermore, the old flat mostlikely is having bigger space as well.

However, on the other hand, there always be the fear that the building will be undergoing some major upgrading (e.g: lift upgrading, balcony etc etc) which eventually will cost a bomb. As a SPR, we will not entitle to some government grant pertaining to those upgrading activities; thus eventually we have to pay much much higher than the local Singaporeans. Not to mention if HDB decided to demolish the building. The rumor said HDB will indemnify slightly lower than valuation price.

Having said that, what would forum think (or probably some of forumers have valid experiences) about the case? Is it worth to pay more but having peaceful future? What happen to SPR if HDB decided to take back the flat?

Ay thoughts would certainly be welcome. Thanks in advance

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sundaymorningstaple
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Re: OLD VS NEW HDB flats

Post by sundaymorningstaple » Wed, 25 Feb 2009 7:12 pm

chandvi wrote:Need everybody's advice and shared experience on buying property, especially HDB flat in Singapore.

As Singapore PR, I have a dillema in buying a HDB flat.

Which one better? Buying a flat at a pretty aging building (20 years+) or something considerably new around 5 - 6 years.

This depends on where you are planning on buying. I bought a 14 year old flat 9 years ago. Still in it today. (It was as 5 room resale flat)

The old flat will have lower valuation price; therefore it definitely will be better in term of mortgage, agency fee, admin fee as well as the first installment (at 10% according to the new rule). Furthermore, the old flat mostlikely is having bigger space as well.

Older flat do not necessarily have a lower valuation price. It depends on HOW old they are and where they are located. Most older flats have built up estates with lots of commercial enterprises supporting the estate. Newer estates have problems with bus and other transport services, lack of amenities, no hospitals or good schools nearby. Most definitely an older flat will have more space (although not too old as they tend to get smaller as well.) 15 to 25 year old flats are the largest comparatively speaking. Also, the flats of that era are larger in places like Yishun & Woodlands than they are closer into town.

However, on the other hand, there always be the fear that the building will be undergoing some major upgrading (e.g: lift upgrading, balcony etc etc) which eventually will cost a bomb. As a SPR, we will not entitle to some government grant pertaining to those upgrading activities; thus eventually we have to pay much much higher than the local Singaporeans. Not to mention if HDB decided to demolish the building. The rumor said HDB will indemnify slightly lower than valuation price.

Having said that, what would forum think (or probably some of forumers have valid experiences) about the case? Is it worth to pay more but having peaceful future? What happen to SPR if HDB decided to take back the flat?

There is no such thing as a peaceful future. If you buy a younger flat, there is not any guarantee that they won't take them back as well. If you are going to buy a flat, you won't keep it more than around 10 years anyway before you upgrade. Frankly, if the economy keeps going the way it's heading, you would be wise to buy a old flat to save some money. As far as the government taking the flat back, most if not all come out well ahead of the game when that happens. Only a few sob stories are ever heard.


Ay thoughts would certainly be welcome. Thanks in advance
ksl is also a PR here and has bought an HDB flat somewhere in the northeast probably within walking distance of where I'm staying as well. Course I walk home from work at night (2.4km) so maybe it a bit further for some others.

sms
SOME PEOPLE TRY TO TURN BACK THEIR ODOMETERS. NOT ME. I WANT PEOPLE TO KNOW WHY I LOOK THIS WAY. I'VE TRAVELED A LONG WAY, AND SOME OF THE ROADS WEREN'T PAVED. ~ Will Rogers

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Post by BodyBlitz » Thu, 26 Feb 2009 2:15 am

Don't look at flates with its age, but its amenities and location.

I'm a local and I like where i'm staying now even though its about 15-17 years old there abouts - been living currently here for more than 10 years already.

What i gain from it? NTUC across the road, Esso petrol kiosk within 5 mins walk, 7-11 just down stairs and a string of coffeeshops/eateries all along the road with 24 hours indian muslim store about 10 mins walk away.

10-15 mins walk from the MRT, 3 feeder bus services to the interchange/mrt within 2-3 stops(in case of rain), and bus services which can take me to any other part of the island that the MRT cannot bring me (night rider stops at just outside my place)

A nice park close by and lots of greenery, peaceful environment.

Life is extremely convenient.

Recently we had an upgrade about a year or two back, they installed lifts on every level and so happen, i'm on top floor it feels like i have a private lift right to my door step (shared by only 3 other neighbors).
Its really a blessing when you don't have to walk another 100m lugging a heavy parcel home or for the elderly.

Now days new flat are hardly for living, everything is centralized and even the floor space is reduced considerably - much much smaller than older flats. It really feels like pigeon hole when i visit my friends living in newer estates like Seng kang/Sembawang.

I suggest you look beyond the dollars and cents unless you're on a extremely tight budget and look at the immediate gains in your quality of life for your wife/husband and children.
http://bodyblitz.sg - A new era of fitness.

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